of their head after the election, and exactly what happened. i love it. we'll have more of this tomorrow. [ ♪ theme music ♪ ] >> eliot: good evening, i'm eliot spitzer, and san francisco, california, and this is "viewpoint." this is a scene we've witnessed before and one we'll watch for four more years after a tumultuous campaign and one long night, the president along with his wife and daughter returned home to the white house this evening. the power of the presidency is making itself felt in other parts of dc where a fear of possible economic collapse is a recurring theme. speaker of the house john boehner seem interested in a compromise with democrats that could keep the country from plunging off the so-called

fiscal cliff. while florida is still official officially too close to call even without its 29 collect 29 electoral college votes mr. obama won with a hefty 303 electoral votes but a mere 53% of the popular votes begging the question, was it a mandate or a draw. the president promised to reach out to leaders of both parties. speaker boehner appeared to be ready to take him up on his offer with hundreds of billions in tax hikes that could tank the economy, boehner staked out this position on behalf of his caucus. >> for the purposes of bipartisan agreement that begins to solve the problem we're willing to accept new revenue under the right conditions. what matters is where the increase revenue comes from and what type of reform comes with it. >> eliot: a few hours earlier

harry reid also called for compromise. >> it's better to dance than to fight. it's better to work together. everything doesn't have to be a fight. everyone should comprehend, especially my senate friends that legislation is the art of compromise and consensus building. >> eliot: but all the political happy talk wasn't enough to soothe the markets with two years of political gridlock behind us and an uncertain future ahead the dow jones industrial average dropped down nearly 313 points for the for time in a year. i'm joined by richard socarides deputy director of the 1996 clinton-gore campaign and former lgbt wider to president clinton and president of equality

matters. long with sam seder host of "ring of fire" and "the majority report." is this a new world or a bit of happy talk that will last a few hours, or will this campaign rearrange how political leaders feel that they must compromise. let's start with you richard and the republican party. the tea party was crushed yesterday. will john boehner react to that? will the tea party be pushed overboard and the g.o.p. come back to what it used to be? >> i think it's fairly clear if they want to stay in business as a political party, and if they want to be successful in getting their people elected they're going to have to change the way they do things, and they're going to have to moderate, soften some of their positions. they've got this huge problem with young people and a huge problem with hispanic, with women, with gays and lesbians. you would think they would have to do something, but you know, you know we don't have a crystal ball and so far they're showing no real sign of wanting

to change their ways. >> eliot: sam, you know, the republican party if you look at the exit polls, and you see that they were virtually nowhere with latinos, nowhere with blacks, no one where people under 29, there is a huge gender gap. it's a party of angry white men. that is not a plan of success. doesn't anybody in the republican party get that in terms of raw politics? is there somebody who is saying guys change you're approach to this game. >> lindsey graham said that exact statement a month and a half ago and it will mean absolutely nothing. i think the republican party as a national party is on a death spiral. if there was someone who could make that determination hey we've got to reach out to latinos. we've got to reach out to single women. we got to reach out to african-americans not just put them, you know, find a couple and put them on the stage at the convention but have policies that in some way are not

antagonistic towards these people. even if there was a voice within the republican party of saying, they're incapable of doing that. there is too much mis-aligned agenda in the party. they've created a frankenstein. it's now running through the streets, and there is nothing that dr. frankenstein can do. >> cenk: i think dr. frankenstein was slain last night, but you're right giving back to the republican convention when the camera would scan across the audience, it was exclusively moon monochromatic. and tokenism was the theme of the moment. it was obviously a failed effort. let's pivot the republican party spiraling out of control in a death spiral. richard, back to you argue

argumentatively, will he continue what he was criticized for in the first term, compromise compromise, compromise. or would he say compromise and grand vision on the other. which direction does he go? >> last night he gave a terrific speech. it was president obama at his best. i thought the most important moment was when he talked about we're not a divided country. there are lots of things that unite us. we're not just about red states and blue states. but my own personal view is what he should do is he needs to go out and talk to the american people about those things, and what it is that he thinks that unites us as a country. what he thinks can bring us together. this notion that it all happens in washington, that there is compromise and stand on principle. the lesson for this president in the first four years ought to be he didn't spend enough time out with the people leading the country and explaining what his vision for the country was. i think that the government--if

he can sell his vision to the people, the government will follow. >> eliot: richard, let me restate what you said which is exactly right. he wants to persuade us that we're not divided. he's wrong. we're divided about fundamental principles. that's okay. that's what democracy is all about. but if he wants to lead us, he has to persuade the group he disagrees with instead of pretending that we're not dividing and masking over, and that's not the way you lead. that's a fundamental issue. sam, what do you think--what do you hope he does, what do you fear he will do. >> i hope that he learns the lesson that there is no compromising with the republicans. you have to essentially, what richard said, you have to go out and get that popular support for your program and essentially threaten them and dare them to obstruct and make that obstruction, not just an obstruction of president obama's

agenda but the agenda of the american public. my fear is on some level for president obama, his legacy for his mind should be some form of grand bargain. there has been indications of this. he put it on the table with john boehner a year or two ago. i'm afraid he'll put it back on the table. it's a real concern because the fact of the matter there is 85% support for social security. if you want to talk about no blue states and red states. there is probably no other program that our government is involved in that has more universal transparty support. >> eliot: sam, what i think you hear you say something that the president needs to go against the grain of what every journalist is saying he should do. bitter election, compromise, we can all get along. you're saying no. play hard. play tough. disagree. you used the word threaten. it's not a word that the president would use in terms of

describing his own behavior, but he has got to play the game of hard ball negotiating. if he puts the same bargain, the same offer on the table that he offered to boehner last summer, now that he has this political capital. he would be scan squandering and wasting it. >> the president has to see that this was a fairly big win for progressive in america last night. the president he didn't win by a lot of votes but it's a complicated country. he won by loft states. it was a well-run campaign. he made a better case, we picked up more women in the senate. we have a lot of gay rights initiatives across the country that were successful. there is an election where there is a progressive mandate for the next four years. i hope the president sees it. so far there is no real sign that he is. >> eliot: i want you to pick up on that point. you mentioned the initiative on

same section marriage. talk for a moment, if you would about the state referendum. >> on gay rights issues and on same-sex marriage in particular it was a huge night. tammy baldwin the first gay person elected to the u.s. senate. then we had these same sex ballot measures, same sex ballot measures, which we've never had on the ballot before. for the first time we had a tipping point where we won not one of these states but all four of them where they were on the ballot. the president's endorsement of same-sex marriage helped a great deal in those. the president's endorsement of same-sex marriage last may helped him get re-elected. democrats always said this is the kiss of death. we don't want to be--we are with you, but we don't want to say

we're with you because it's toxic because people will use it against us. this helped get the president re-elected this time. >> eliot: richard, i think you're so correct. sometimes doing what is right turns out to be good politics. taking the risk of being out in front of an issue not lurking or leading behind that famous phrase. quickly, unfortunately time is running out. but you agree with richard that the president has to continue to lead on the issue of same section marriage and other civil rights issues as time goes forward. >> more importantly the american public and progressives need to pressure the president. you know, we can rely on the president to do what he thinks is right or to get a certain message, but there must be pressure on the president. there must be pressure on the house democrats not to make a deal, not to provide the votes where boehner can't get those votes for a grand bargain if it involves social security, if it involves cutting medicare. >> cenk: some how i think you'll keep putting that pressure on

the white house as well you should. richard socarides president of equality matters and sam seder host of ring of fire and the "the majority report." barbara lee joins us coming right up. everywhere. >> hi, i'm rick loz. i joined the united states air force in 1987. as i was leaving the service i went into a civilian career for a little bit but i was looking for a little bit more than what the civilian career had to offer me and that's when learned about the little caesars veterans program. the little caesars veterans program helps the veterans transition to civilian life. they give them credits and discounts on the things that they are going to need to help open a new store. it was a program that they were just starting to kick off and i got the honor of being the very

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>> eliot: with the house still control by republicans the road

to the fiscal cliff is a bumpy one. congresswoman barbara lee joins me next.

>> eliot: new election same players, will the out come be any different? congresswoman barr barr, who won a squeaker of a race garner a mere 86% of the race. congratulations. i'm sure you were sweating bullets. >> thank you very much. i think it's very important that all of us engage with our constituents and we afford the opportunity for a good campaign and a major get out the vote effort. that's what we did and people voted. >> eliot: i know your reputation, you work incessant incessantly, and that's what constituents want, and that's not easy. >> i think after the elections last night, it's really

remarkable as leader pelosi said, we have the majority minority caucus. first of all, never had an african-american as vice chair. my record speaks for itself in terms of being able to work with alfas sets of our caucus to bring people together, and i want to make sure that we broaden the chance that every's voices are heard and we become a strong, effective caucus. i think it's important that all of our democrats really begin to work more closely with the constituentcy which elected president barack obama, and that's going to be important. >> eliot: the question that many people are asking today what will the president approach john boehner with? will he go back with the offer from last summer which many people say should not be put back on the table. should there be a grand bargain and if so, what should it's constituent elements be? many people say we don't want to

agree to the entitlement cuts until the republicans agree to revenue increases. >> we should have a balanced approach. and we have to have tax fairness. we have to allow the bush era tax cuts for the very wealthy to end. there has to be equality and justice there in the tax system. secondly when you talk about deficit reduction and budget cuts, the bottom line is who are going to pay? are we going to cut senior citizens medicare, social security, food stamps, the most vulnerable, are we going to look at waste, fraud and abuse where we should look and cut. >> eliot: we are now at that moment that everyone has been waiting for. let's get through the elections. that's what everyone said during the summer. we're here now. time is short between now and january 1 1st when sequestrations

end. you want to come to us with a tax cut plan, we're here to deal with you. let them expire. what is wrong with that? >> there are many who would think that makes a lot of sense. what we have to do is make sure that middle income individuals and families and low income and the working poor don't pay for that. and so i think what we have to make sure of is with fiscal cliff looming is to make sure there is fairness in the middle income people and low income, working poor that they don't pay that price. that would not be fair for them. >> eliot: there is without question that's where we want to end up. but it struck me the way the white house negotiated last year and i hope that they got. and the thumping that the tea party got just look john boehner in the eye and said we have done our bit. we won the election. you're still the speaker. the president is still here. you're going it lose all your

tax cuts on january 1st. the ratio of cuts to tax increases was completely askew last time. why not push john boehner and say the public has spoken, and fairness dictates. >> i agree, we have to be tough in our negotiations. you can't start in a place where there is no place to move. many lessons were learned. i did not support the sequestration and what took place. i hope with speaker boehner talking about bipartisanship and wanting to work together, he has got to address the tax cuts for the very wealthy. >> eliot: having been out here for the last couple of days, we covered the election here in san francisco. i love your city, and oakland love both of them. >> it's beautiful along the entire east bay. >> eliot: proposition 30 was on the ballot here in california. it passed. it's what jerry brown is doing to get additional revenue to

eliminate the need to cut education spending. he is increasing the tax rate on the wealthy. increasing sales tax and getting $6 billion a year of extra revenue in the state. the public voted for it. >> the public understands that. that's why the public re-elected president obama. that's been his exact position, and i'm proud of the residents here who voted for that because our children deserve that. they deserve to be taken care of in terms of not being on the chopping block. >> eliot: i think jerry brown defense a fair bit of credit. he was taking a lot of swings and arrows headed his way. he said if you don't go for this, i have to cut your education. and the rest of the nation should look at california. you are big. the set the example often.

the public said this makes sense. the president can say to john boehner, the public supports it. >> governor brown led the charge on this. he was steady, focused and he did not relent, and did not allow anyone to push him back on that. we won and you're right. i think the country is ready for a balanced approach. >> eliot: and having been in a position as governor, i know what it's like to raise taxes. people get furious but he was right. congresswoman barbara lee. congratulations. newly elected congressman from florida, alan grayson joins me next.

>> eliot: he goes nowhere quietly. you can be sure you'll hear from him in january. quite simply, he is a back. >> here it is. the republican healthcare plan for america. don't get sick. that's right. don't get sick. if you have insurance don't get sick. if you don't have insurance

don't get sick. if you're sick, don't get sick. the republicans do have a backup plan if you do get sick. if you get sick in america, this is what the republicans want you to do. if you get sick, america the republican healthcare plan is this. die quickly. >> eliot: democratic congress man alan grayson joins me now congressman many thanks for your time. that was one of the memorable moments in a memorable healthcare debate. it sent ripples through the shattering class as we refer to it, the insiders who think they know everything. man, who is this guy. it is great to see and hear your voice back in washington. you will unsettle and ruffle a few featers what is on your agenda. >> to make john boehner cry. he cries so easy. >> eliot: that's too's.

something harder than that. >> how about full employment or universal healthcare. what about that? >> eliot: right, you're going to go to washington to approach the progressive agenda. how comfortable are you that after last night the president understands that this is now a time for a grand agenda not just a greened bargain? >> it remains to be seen. i couldn't tell from watching the campaign. i couldn't tell from the speech. i don't know. i don't know if the president is going to fight for the middle class, fight to make america more equal or play checkers with the other side and see how that works out. >> eliot: there is enormous pressure even if the public doesn't appreciate it, but there is pressure to play nice and say things that sometimes need to be said but are not comfortable for people to hear. i sense and the reason why i'm so excited you're going back to washington, you're going to push the white house and hold them

accountable if they cave too quickly. what should the president's first statement to john boehner-- >> why talk about caving at all? the democrats won the election. i'm upset by the idea that we would try to make our fiscal policies more sound at the expense of our seniors. i don't understand why we want to do that. why are we taking to the people who have nothing to feed the rich? i don't get that. i don't understand. i'm against cuts and benefits to social security period. i'm against cuts to benefits of medicare period. we're not going to throw them off the train as long as i have something to say about it. >> eliot: which means you're going to propose and those who agree with you i'm one of them, a tax policy and tax plan that will take us in a progressive direction, close the loopholes will you layout in the white house and say here is the plan,

the alternative plan that will get us where we need to go, and when will you do that for us? >> every year the progressive caucus has proposed an alternative budget. the idea that mitt romney should not be paying less taxes than the secretary who works for warren buffet or anyone else, the idea that the rich should pay their fair share. if we go back to the principle where a dollar is a dollar, because you are rich and you get it through capital gains you get some special tax break. if we go back to the sense that a dollar is a dollar, and they're all taxed equally that substantially goes to reduce the deficit. that tax break alone is over $100 billion a year. >> eliot: the notion of saying as you did that the capital gains income is the same thing as ordinary income, and it was in simpson-bowles, and beam want

to ignore that, and a report came out saying that the premise of the entire republican tax policy lowering tax rates on capital increases investments is wrong. it seems to me if you argue that point to the public they'll understand what you're proposing is the right way to go on equity ground and economic development ground. >> let's stop stealing from the poor. they don't have any money left. >> eliot: i think that's what the case. is it an irony that allen west lost and you won is this a shift in politics? >> it's a massive upgrade in alan's. that's the way i see it. the greatest upgrade in alans that humanity has ever seen. >> eliot: it's a good thing that you don't have desks next to each other. he might disagree with you. i'm glad he is out and you are in: it's remarkable. the tea party got a thumping that no one could have predicted

two years ago. what happened that led to this. >> i think it's the public's willingness to listen to nonsense from the koch brothers and the health insurance companies and karl rove with all these fancy ads that mean nothing. the public doesn't believe what it sees on tv. their so-called magic is not working any longer. i think on a deeper level is what it means the reason why the party is over for the tea party is because they could not come up with any solutions to any problems. here it is more than three years later when i make that speech, and it is still true as far as the tea party is concerned, if you don't have health insurance then if you get sick you're out of luck. don't get sick. it's true then and it's true now whether you're talking about employment education benefits, if you're talking about anything that actually matters in people's lives healthcare, housing, they have no answers to anything. and so of course they're going to fail. that's the political dead-end. they're ignoring the voters so

sooner or later the voters will ignore them. >> eliot: i think you're exactly right. what the republicans found so problematic about the speech that you gave on the floor was it's accuracy, and you lanced the boil of the policies in our how articulated. it's wonderful to have you back. alan grayson of florida. we look forward to having you on the show in months ahead. >> thank you very much. >> eliot: one more question from last night. is the tea party over. more "viewpoint" up next.

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>> eliot: alan grayson, joy joe richard richard mourdock, all of them. michelle bachmann barely held

on. and there was a clear message for the tea party. your ice, please exit stage right. but perhaps the best news last night was for progressives was the election of elizabeth warren, the first female senator from massachusetts. >> you tack on the powerful wall street banks and super interests and you let them know that you want a senator who will be out there fighting for the middle class all the of time. >> eliot: i'm joined by "the young turks'" epic michael shure and david catanese. i want to get inside the head of the tea party. imagine if you will, the tea party getting together on capitol hill in the next couple of days or next january what do they say to each other? do they realize that they led the republican party over a cliff? who is in charge? and what is their strategy? do they stick to their rap rabid

position. >> they're not the most vocal but you've got rand paul, demint. cruz from texas. i do think there is a day of reckoning coming. i'm not sure if it's in the tea party meeting but i've talked to officials today particularly on the senate side where democrats picked up seats where they said, before we head into 2014 we all got to get into a room and figure this out. we have too many divisive primaries which are producing radical out of the mainstream nominees who are inhibiting our ability to claim seats. it's going to be a difficult conversation. it's going to have to happen or they're going to lose more seats

next cycle. >> eliot: michael, it seems to me a democratic conspiracy could not have created a better weapon to reelect president obama than the tea party this cycle. does the tea party recognize that? >> it's hard. as david was saying when they get together there a lot about denials and thinking that they're right. one of the things that they have working in their favor in a strange way is that michigan mcconnell is up in 2014. so too is john cornon. those two men have to get together and figure out how they handle the tea party whatever the demeanor of the tea heart party. we don't claim to know how they work but they've shown they can bebe a kamikaze. >> eliot: it is a remarkable

thing. another phenomenon was the rise of women. new hampshire, now an all female delegation. this is a wonderful thing. what explains this? >> i think what explains it women make up more than half of the voting public in this country. the reporting on women was disaster. women voters, not only women candidates but women voters see that. todd akin lost to claire mccassmccaskill. and then mazie hirono coming out of hawai'i. it will change the tenor of the senate. >> eliot: another phenomenon the progressive caucus is growing. there are going to be a growing number of progressive voices on the hill, pushing harry reid as

well. do they become the tea party of the left? will they be smarter in the way they handle things? >> well look, there are definitely some thoroughbred liberals with elizabeth warren. tammy baldwin, sherrod brown his re-election he's a tried and true liberal. but they have got political elements to deal with because you have moderates heidi heitkamp, one of the biggest surprise. she railed against the president and said he's an enemy of big oil and energy interests. jon tester won for re-election in montana and was critical of the president. you've got senators up in 2014 in louisiana, alaska, so i think there could be some tension even we know the democratic caucus between the elizabeth warren new wing that should definitely be progressive. out front on issues.

the cameras are going to be out there. will there be push back from the moderate caucus? i think that will be an interesting part to watch as much as the tea party phenomenon on the right. >> eliot: you're right. there will be significant moderate voices pushing back against the progressive wing of the party. but it is renewed resuscitated. you have elizabeth warren and voices that have strength and passion and support. >> there is no question about it. you have to take what david said very seriously. he was alludeing to mark prior and a couple that i'm forgetting right now but there will be very complicated democrats who will make the filibuster implicated. but they'll want to see this progressive win more than the moderates in the republican party and the tea party. >> eliot: michael mentioned the filibuster reform. we've been talking about it for months on this show. the vice president talked about

it. it's hard to see how the senate becomes a legislating body. harry reid said he wants to do it. what will it do and what effect will it have on the legislative process? >> he wants to take baby steps. he had a big press release on capitol hill where he said filibuster reform is going to be one of his top priorities, not eliminating the filibuster but reining it in, and when you should be able to implement it. we haven't heard much from the republican side on where they're going to be willing to compromise. you know, then there is the possibility of harry reid using the nuclear option to get through filibuster reform. i think first in these first days after election you put out the olive branch, the other side harry reid, we won. it's my agenda. would you like to help us out on filibuster reform. put out the olive branch. wait for the response. if you don't get it, it will be a test. i think the democrats do feel

they have a mandate especially in the senate picking up seats to push. >> not only do you put out those olive branches, you put out the trial balloons, especially in this lame duck congress, where they start testing ideas what sort of incremental change can there be? can there be a time when it's prohibited to actually enact a filibuster and even start talking about the nuclear option, and if that is met with derision and then pull back. >> eliot: harry reid said, you thought you were going to pull back my position, you failed. now come up with a compromise on filibuster or i will do it first two weeks of january. >> he needs democrats. >> eliot: i think a growing number of them do. michael shure, david catanese, thank you for your time and insights as always. more lessons coming from last night on my view.

>> eliot: the adrenaline has faded, the exhaustion is setting in, and the reality that the campaign is over and the task of governing awaits is growing on the victors. meanwhile, a quiet reality of loss is setting in for the vanquished. for the rest of us the question remains. what does it all mean? here are a few quick takes and remember, sometimes the most obvious is also the most important. first, the tea party got thumped. it's candidates lost essential senate races that the republican party had taken for granted mere months ago. and the tea party isolated mitt romney from mainstream voters linking him top rabid ideology that he could not shake as he desperately tried to move to the middle in the closing weeks of the campaign. lesson: the loudest most rabid voices don't often command the votes needed to win in november. second in the melting pot that is america inclusive trumps

exclusive. whether it's single women young adults or minorities alienating the most rapidly growing voting blocs is just not smart politics. latinos voted three to one for the president. to survive the g.o.p. needs to invite people in, not shut them out. third, pandering on everything doesn't work at the end of the day. at some level constancy of views matters when running for the presidency. you can't be a thing logical right winger on issues of contraception and women's health and then suddenly pretend to be moderate route sacrificing your credibilitying. en every issue that matter, the etch-a-sketch approach was a debilitating factor that was corrosive to the core function of the president strength and leadership. fourth we really did build this, all of us together. at a deeper level, this election was about our notion of community, especially in times of need. and that's why hurricane sandy was such a vital metaphor. it was the real-life reminder

that crises whether the cataclysm of 2008 or a natural disaster requires a common effort in response. yes, our sense of community does not override our deep of belief that individuals make our nation great. but no individual can succeed without the surrounding support and investment provided by our sense of community and common purpose. mitt romney simply didn't seem able to convey this simple but core notion of what it means to be an american. fifth, the republican house has to figure out whether to continue to play on justist naysayer or come to the table. is grover norquist still the head of the republican party or will john boehner acknowledge the better angels of his nature and negotiate a meaningful compromise with the president. finally, the question for the president, will he tell the story of our national success with power and passion as he can and did last night to build

support for the range of issues that demand attention, from the fiscal cliff to the environment and from the stagnation of middle class income to the ravages of gun violence, he has won re-election, and where it the power of the pulpit. let's hope that he use it is. that's my view. before the cold & flu season help prevent with lysol. because when you have 10 times more protection with each hand wash... and kill 99.9% of germs around the house with each spray... those healthy habits start to add up. this season, a good offense is the best defense and lysol has your family covered because that's our mission for health.

(vo) she gets the comedians laughing and the thinkers thinking. >>ok, so there's wiggle room in the ten commandments, that's what you're saying. (vo) she's joy behar. >>current will let me say anything. >> eliot: so we are here after a marathon election and after campaign spending that went into the billions, yet we have the same democratic president, at odds with the same republican leaders. is this deja vu all over again? let's bring in michael tomasky special correspondent for "newsweek" and the daily beast. welcome. is there anything fundamentally different, and if so, what?

>> it's difficult to say anything is fundamentally different. john boehner gave a speech in which he seem to open the door just a crack to the idea of tax revenues, but he did say very carefully he wouldn't be for tax increases. they would be for an increase in revenues if they could get them some other way. don'tdon't ask me to explain how that happens, but that's what he said. he did open the door just a crack, and i think it will be hard for president obama, even though he won decisively last night, to persuade these people on the hill, the republicans on the hill, to play ball. >> eliot: we are now at that moment that everyone has been delivering the issue after the election, we know who the players are. the fiscal cliff is approaching. whatever your views, now is to thenotthe time for evasiveness. what is john boehner's plan. i don't know what he's asking us for.

>> yeah, i didn't realize what exactly he was saying. i talked to three or four different people about it, and i heard three or four different interpretations. the republicans in congress, the leaders, boehner is very nervous about whether he's going to maintain his speakership. mitch mcconnell is very nervous about how the senate is going to react to the new situation on capitol hill. it's going to take some time for this to play out. it's just going--it's not going to happen quickly. and if people think--people watching the news, eliot might be thinking that republicans suddenly are going to release that they have to change their stripes, and they have to be different--no, no, no. they're not going to realize that suddenly at all. >> eliot: this was not an epiphany moment for the republican party. you said something interesting. that john boehner may be worried about his speakership. who would challenge him and how likely would it be that they

could succeed. >> it would be eric cantor or mccartymccarthy from california. they're more in line with the tea party caucus. as of right now i don't think anythings that changed as a result of this election to suggest that that faction in the house has lost any power. now we'll see when they all get back to town, and they all start talking to each other and they all start seeing what they want to do and how they want to play this, whether they're going to decide to do anything differently. i do think there is a chance, a slim chance that the president can get boehner and maybe a few handful of republicans in the house to play ball with them, and to cut some kind of deal. but it's going to be very hard. there is going to be a lot of opposition within the republican party to it if a number of republicans an are willing to do so. >> eliot: what you're saying

inside the asylum, i don't mean to be derogatory, but maybe it is. they don't realize that they got a thumping with the american country saying hey guys, this is not the way to go. will this be the grand bargain over the past summer which many democrats criticize or will he say to himself, i have the opportunity for a grand new agenda. how does the white house see this? >> this raises a very interesting point. there is going to be an intrademocrattic tussle. i don't want to say war but struggle, battle over what the democratic party should do in terms of trying to come to some kind of arrangement with the republicans about this. in other words if the republicans--if the president can get a certain number of republicans to agree to tax increases, what is he going to give up? is he going to trade, for example, a gradual increase in the medicare eligibility age

just to pick one example. a lot of liberals in the house and in the senate, would look very ascans at that. so there is going to be a struggle in the party as well what they should do here, the direction they should go and how far they should go in terms of making arrangement. >> eliot: i think there is a sense that yesterday was a day of renewal, it was an affirmation for the white house and leverage and bargaining position such that the white house should let the bush tax cuts expire. look at john boehner in january and say okay, the ball is in your camp. we were ready to deal but the leverage is on you. i don't know how that will play out. will mitt romney be forgotten a week from now? he had no sustained position on anything he left no imprint. everyone will stop talking about him and he'll be forgotten.

>> you're right. but paul ryan is in the house. he won the seat, he won it more narrowly than he usually wins it, but he did win it. his image and his standing among his colleagues, maybe not to you and me, but for his colleagues his standing will be burnish ed. most senators, they don't fear any backlash from democrats from moderate republicans. the only backlash they fear is from their right. am i going to get a primary from my right. that's what is going to dictate how they behave, and that's going to dictate how hard a bargain they drive. i think they're going to drive a pretty hard bargain.